Get Financially Fit

Personal Finance Guide

Choosing the right stocks to trade can be one of the most difficult aspects of share trading. If you are just starting out, the vast number of stocks available to trade can seem somewhat daunting. To help you choose the top stock picks of the day, we’ve put together the following guidelines.

Find the right site

There is a massive amount of information available online. If you want to find out which stocks to trade, you will need to start looking for sites that give you the information you need. This may take some time, as you will need to sift through the sites that are not relevant or are unhelpful.

However, taking time to do this should mean you get the information you need to find the best stock picks. Remember, you will need to check back on these sites on a regular basis – the stock market is ever-changing, so stay informed to stay on top of the best stock picks. Learn about the stock market & use Etrades trading tools directly on their official website.

Look for a grading system

Some sites offering stock information will grade each stock to make it easier to see which stocks are doing well. For example, thestreet.com grades its stock picks from A to E. A is rated as excellent, B is good, C is fair, D is weak and E is very weak.

On top of that, each band can be a + or a -. If a stock is rated as B+ it is in the top third of the B band. If a stock is rated as D- it is in the bottom third of the D band. This can help investors decide whether to buy (A and B bands), hold (C band), or sell (D and E bands).

Read Up

Along with rating systems, many sites will offer videos and articles relating to stock picks and the stock market in general. Use these resources to find out more about stocks that are doing well, and stocks that are not doing so well. This should help you decide what to invest in, and how to keep your portfolio looking healthy.

Sign up for alerts

Some sites – and your online trading platform – may offer to send you alerts to keep you updated on changes in the stock market, and on stocks you are interested in. This can help to keep you in the loop when you are busy elsewhere.

Social media can also be a handy tool if you are trying to keep on top of stock picks. You might want to check out StockTwits for up-to-the-minute info, but again, find the medium that works best for you.

Develop your own watch list

Keeping an eye on the entire stock market is not only daunting, it is time-consuming as well. If you don’t have time to keep watch over every single stock, it can help to break down your options into specific sectors.

Some of the more popular sectors include banking, automotive, pharmaceuticals, retail, internet, and precious metals. It can be a good idea to identify one or two sectors you are interested in, and spend a couple of months concentrating on those sectors. This can make it easier to keep track of good stock options and stock movement within your chosen sector.

Use your head

While reading other people’s hot stock tips may seem like the perfect way to save time, it’s important to use your head before choosing what to invest in. Read up on good stock choices and keep on top of the market, but always do your own research before making any investment decisions.